3 From the following particulars, Find out stock. Gross profit 25% on sales, opening stock Rs. 80,000, closing stock Rs. 60,000.
4 X Ltd. has a current ratio of 4.5:1 and acid test ratio of 3:1. If the inventory is Rs. 24,000, find out its current liabilities.
5 List any four sources of funds.
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6 The opening balance in the provision for taxation A/c as on 1st April, 2014 was Rs.40,000 and the closing balance as on 31st March 2015 was Rs.50,000. The taxes paid during the year amounted to Rs 30,000. How would you deal this item in funds flow statement assuming it is a current liability?
7 Cash from financing Activities.
8 Discuss the limitations of Ratio Analysis.
PART - B (6X12=60 Marks)
Note: Answer all questions in not exceeding 4 pages each.
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9 a) Explain the uses and limitations of financial statements.
OR
b) What are the different types of financial statements? Explain their importance.
10 The following are the Balance sheets of A Ltd. and B Ltd. as on 31st March 2015. Prepare these on the basis of common size Balance Sheet and comment.
| Particulars | A Ltd. Rs. | B Ltd. Rs. |
|---|---|---|
| Equity and liabilities | ||
| Share holder fund | ||
| Share capital | 3,50,000 | 2,50,000 |
| Reserves and surplus | 70,000 | 70,000 |
| Non-current liabilities | ||
| Debentures | 3,50,000 | 2,50,000 |
| Current Liabilities | ||
| Trade payables: Creditors | 25,000 | 20,000 |
| Bills payables | 15,000 | 10,000 |
Calculate the following ratios:
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(i) Gross profit Ratio (ii) Net profit Ratio (iii) Net operating Profit Ratio (iv) Operating Ratio (v)
OR
b) Explain the role of ratio analysis in the interpretation of financial statements.
11 a) From the following balance sheets, prepare a schedule of changes in working capital and funds flow statement.
| Equity and Liabilities | 2014 | 2015 | Assets | 2014 | 2015 |
|---|---|---|---|---|---|
| Share capital | 4,00,000 | 4,50,000 | Fixed Assets | 6,10,000 | 7,20,000 |
| Reserves and surplus | (50,000) | 70,000 | Investments | 50,000 | 1,30,000 |
| Debentures | 2,00,000 | 2,10,000 | Current Assets | 2,40,000 | 3,75,000 |
| Debentures | 2,40,000 | 3,50,000 | Other current Assets | 10,000 | 5,000 |
| Current liabilities | 1,20,000 | 1,50,000 | preliminary expenses | ||
| 9,10,000 | 12,30,000 | 9,10,000 | 12,30,000 |
i) Depreciation charged on fixed assets was Rs 60,000
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ii) A machine of the book value of Rs.40,000 was sold for Rs.30,000
OR
b) What is a funds flow statement? Explain its importance to the management.
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